Generative AI Gains Ground in Corporate Legal Departments: Nearly Half Now Using the Technology, According to Report from FTI Consulting and Relativity
Frankfurt, 27 May 2025 — Corporate legal departments around the world are expressing increasing interest in and adoption of generative artificial intelligence, while remaining vigilant about the risks. According to The General Counsel Report 2025 from FTI Consulting and global legal technology company Relativity, nearly half (44%) of the general counsel surveyed across a dozen countries report actively using AI, marking a significant increase from 28% in the previous year and 20% in 2023.
The key findings include:- A doubling of AI usage over past two years.
- Legal chiefs reported positive experiences with AI tools in nine out of 10 application areas.
- However, 85% expressed uncertainty about the legal risks associated with AI technologies.
“Within just two years, the adoption of generative AI tools in legal departments worldwide has more than doubled,” said Renato Fazzone, Head of the Technology segment in Germany and the segment’s Co-Leader in Europe, the Middle East and Africa (“EMEA”) at FTI Consulting. “Within the coming year, nearly all major corporate legal departments globally are expected to be actively integrating and piloting generative AI and other advanced technologies into workflows.”
The annual General Counsel Report, which is now in its sixth year, is based on individual interviews conducted by Ari Kaplan Advisors with the chief legal officers of large corporations worldwide, as well as a quantitative survey of more than 200 legal counsel across a dozen countries.
Mr. Fazzone added, “Although interviews confirmed that AI usage often remains experimental and pilot-based, the quantitative analysis highlights areas where substantial practical experience has already been gained. “These findings align with our direct interactions with clients.”
“Although European chief legal officers reported feeling less prepared for various technologies compared to what some of their global counterparts reported, a deeper dive into the data indicates European general counsel may be better prepared in an important area,” said David Horrigan, discovery counsel and legal education director at Relativity. “So-called ‘shadow IT,’ the unauthorised use of IT products in organisations, has become a more critical risk given the recent popularity of consumer AI products and European respondents reported the greatest degree of preparedness for shadow IT among respondents from around the world.”
AI Becoming Mainstream in Legal Departments — Strongest Usage in Document Review and E-Discovery
General counsel and their teams report feeling most confident utilising AI for document review (85%), digital preservation and management of large datasets in legal investigations (e-discovery: 80%), and for operational support in legal department management (legal operations: 79%). The least familiarity is reported in early case assessment (42%), general internal investigations of potential misconduct or criminal activities (investigations: 53%), and compliance violation monitoring (57%).
“The provider landscape for AI tools tailored to legal departments remains fragmented,” noted Mr. Fazzone. “While legal experts can typically evaluate tools from a legal perspective, there is often limited expertise regarding the technological aspects. As a result, AI tools with a broader user base generally prevail. Nevertheless, suitable AI solutions now exist for virtually all functions within legal departments, but comprehensive market knowledge is required to identify them.”
Legal Departments Report Insufficient Preparedness for Legal Risks of Emerging Technologies
Legal departments see clear opportunities in AI but must also navigate growing legal risks arising from its use in current and future digital applications across the organisation. Many general counsel reported feeling unprepared or only minimally prepared to address the legal implications of AI and blockchain technologies (85%each). In addition, 65%said they are underprepared to manage the increasing volume of data sources and other forms of AI (62%).
Mr. Fazzone said, “The general counsel that I speak with generally have these technology trends on their radar. Their current unease arises primarily from the rapid evolution of technologies, outpacing the adaptation of legal frameworks. Legal departments often need to reinterpret existing laws until new regulations are established. Therefore, equipping legal departments with top legal talent, sufficient budgets, and close collaboration with technology experts is crucial for effectively managing these challenges.”
Demographics and Methodology
Ari Kaplan personally interviewed 34 leaders serving as the general counsel or chief legal officer of their organisations. Sixty-five percent have a role with global responsibilities, and 63% work in organizations with more than $500 million in annual revenue. Separately, in September 2024, Censuswide conducted a quantitative survey of 207 general counsel and chief legal officers at organisations with more than $100 million in annual revenue and more than 1,000 employees in South America, North America, Europe and Asia Pacific.
The full report is available for download here: https://www.ftitechnology.com/spotlight/gc-report-2025
About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organisations facing crisis and transformation, with more than 8,100 employees located in 33 countries and territories as of March 31, 2025. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalised and independently managed. The Company generated $3.70 billion in revenues during fiscal year 2024. More information can be found at www.fticonsulting.com.
200 Aldersgate
Aldersgate Street
London, EC1A 4HD
Investor Contact:
+1.617.747.1791
mollie.hawkes@fticonsulting.com
Media Contacts:
+44 20 7632 5071
helen.obi@fticonsulting.com
+ 49 170 55 39 838
reinhard.moch@fticonsulting.com
Source: FTI Consulting, Inc.